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Naked Put

What Does Naked Put Mean?
A put option whose writer does not have a short position in the stock on which he or she has written the put. Sometimes referred to as an "uncovered put."

Investopedia explains Naked Put
Naked puts are very risky since the writer can lose big if the underlying asset moves opposite to the desired direction. But, profits are huge if the underlying asset moves in the right direction.

Related Terms

Call Option
Naked Call
Naked Option
Naked Position
Naked Shorting
Underlying
More Related Terms

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